What are requirements for a foreign contractor to be granted construction operating license in Vietnam? What are cases of revocation of construction operating license of a foreign contractor in Vietnam?

What are requirements for a foreign contractor to be granted construction operating license in Vietnam?

Pursuant to Article 103 of the Decree 15/2021/ND-CP stipulating requirements for eligibility to be granted construction operating license:

Requirements for eligibility to be granted construction operating license

1. A foreign contractor will be granted the construction operating license if it has been awarded the contract by the investor/contractor (subcontractor).

2. The foreign contractor must set up a joint venture with a Vietnamese contractor or employ Vietnamese sub-contractors, unless the Vietnamese contractor is ineligible to execute any tasks of the contract package. Upon the joint venture or employment of Vietnamese contractors, it is required to clarify contents, quantity and value of tasks performed by Vietnamese contractors in the joint venture or Vietnamese sub-contractors.

3. The foreign contractor must commit to comply with regulations of Vietnamese law on contract execution in Vietnam.

As regulated above, a foreign contractor will be granted the construction operating license if they meet the following requirements:

[1] A foreign contractor will be granted the construction operating license if it has been awarded the contract by the investor/contractor (subcontractor).

[2] The foreign contractor must set up a joint venture with a Vietnamese contractor or employ Vietnamese sub-contractors, unless the Vietnamese contractor is ineligible to execute any tasks of the contract package.

Upon the joint venture or employment of Vietnamese contractors, it is required to clarify contents, quantity and value of tasks performed by Vietnamese contractors in the joint venture or Vietnamese sub-contractors.

[3] The foreign contractor must commit to comply with regulations of Vietnamese law on contract execution in Vietnam.

What are requirements for a foreign contractor to be granted construction operating license in Vietnam? What are cases of revocation of construction operating license of a foreign contractor in Vietnam? - image from internet

What documents are included in the application for issuance of construction operating license of a foreign contractor in Vietnam?

Pursuant to Article 104 of the Decree 15/2021/ND-CP, the foreign contractor must send an application directly or by post to the agency issuing construction operating license (hereinafter referred to as issuing agency), including:

- An application form for construction operating license;

- A certified true copy of the report on bid results or the decision on lawful contract award;

- A certified true copy or e-copy of the establishment license or the Certificate of Business registration and practice license (if any) of the foreign contractor issued by its nationality country;

- A report on experience in contract execution and certified true copy or e-copy of a report on finance auditing within 3 (three) latest years (for the case not in accordance with procurement law);

- A certified true copy or e-copy of a joint-venture contract with the Vietnamese contractor or an official contract or a rule contract with the Vietnamese sub-contractor to carry out the contract (available in the bid);

- A lawful power of attorney held by the person who is not the legal representative of the contractor;

- A certified true copy or e-copy of project approval decision or investment decision or investment certificate of the project/work.

What are cases of revocation of construction operating license of a foreign contractor in Vietnam?

Pursuant to Article 106 of the Decree 15/2021/ND-CP stipulating revocation of construction operating license:

Revocation of construction operating license

1. A foreign contractor shall have its construction operating license revoked in one of the following cases:

a) The application for issuance of construction operating license contains counterfeit documents;

b) Contents of the construction operating license are corrected, erased or falsified;

c) The construction operating license is misstated at the fault of the issuing authority;

d) The construction operating license is issued ultra vires.

2. Competence in revocation of construction permit:

a) Authorities that have the power to issue construction operating licenses are the ones that have the power to revoke the construction permits that they issued;

b) If the construction operating license is issued against the law but the competent authority that issued the construction operating license fails to revoke it, the Ministry of Construction shall directly revoke that construction operating license.

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As regulated above, a foreign contractor shall have its construction operating license revoked in one of the following cases:

- The application for issuance of construction operating license contains counterfeit documents;

- Contents of the construction operating license are corrected, erased or falsified;

- The construction operating license is misstated at the fault of the issuing authority;

- The construction operating license is issued ultra vires.

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